The price of gasoline is heavily influenced by local regulations, refining capacity, tax policy, domestic politics and geo-politics. The largest cost of gasoline is the price of oil and prices of oil are at inflation-adjusted highs generated by a combination of geo-politics and market volatility. The next biggest is taxes and that varies so much depending where you live and local economics. The next one is refining cost which is influenced by pollution regulations, seasonal variation and capital investment by refiners.

I would have to say having followed the market since 2002 in this area that what started as a relatively benign supply-demand situation (i.e. we were not investing enough money to supply rising demand for gasoline and crude oil) has become a political football and an excuse for traders to drive prices up. People also don't realize how much the local subsidies for fuel in the Middle East, India, China and African nations heavily influences global demand. Basically, what was once a simple market event has now become a situation of collective manipulation - by politicians in the United States, by self-interested policies in the aforementioned Third World nations, by traders using the falling dollar and leveraged assets from hedge funds and private equity pools to drive prices and the cynical neglect of our energy infrastructure by corporations that lasted for years too long before they did anything.

The reality is that if we wanted to do something, there was ALWAYS the money and manpower to do it; it there was the will, it always manages to get done. But, having waited too long, we let the situation get out of control and now no one (or everyone) is driving this bus.

The question you should ask: what will break this crazy vicious cycle?

Keep in mind before you complain about our taxes, that other countries pay much, much more than we do.  Our gas has been subsidized for years, while Europeans and others have been paying two to three times more than we have---and this has resulted in their oil demand diminishing (as the tax proceeds were put into better public transportation systems) while ours has increased due in part to SUV purchases and large homes in the suburbs, far from employment.  

CNN has a wonderful article about this, which I highly recommend reading.

money.cnn.com/.../index.htm

finallyfrugal.blogspot.com

Buy a scooter-I bought a used 2001 Vespa for 2500.00.  It gets about 90 MPG-I  saved about 1500.00 the first month. I put about 6 gallons a month in it. With gas prices hovering around 4.00 a gallon and still rising, I expect to pay for the scooter in about 1 year.  I use it to go anywhere I can get on surface streets.  It's a blast to drive, and I get a lot of comments and wuestions.  

I would agree. Instaed of gettiwng in our car and getting to the gym, why don't we walk. We recently bought 2 bicycles and take our daughter to the park, riding our bikes. good excercise also lots of fun, the whole family spending some timetogether.

WHEN WILL WE LEARN THAT A SITUATION WILL HARM US? THIRTY-FIVE YEARS AGO WE HAD THE SAME PROBLEM,THE SAME TYPE OF EXPERTS. BRAZIL HAD THE SAME PROBLEM AND DECIDED TO DO SOMETHING ABOUT IT, THEY ARE NOW  FREE OF OIL PROBLEMS. MAYBE A FEW MORE IMMIGRANTS FROM BRAZIL WOULD HELP SINCE OUR EXPERTS HAVE NO PLANS YET, GIVE THEM 30 YEARS TO WORK IT OUT.MY FEELINGS ARE GEO-THERMAL BASED TO PRODUCE ELECTRITY FOR ALL OF OUR NEEDS.  THANK YOU FOR THE OPPORTUNITY TO EXPRESS MY FEELINGS.